92002E0027

WRITTEN QUESTION P-0027/02

by Francesco Speroni (NI) to the Commission

(15 January 2002)

Subject: Inaccurate statements concerning the euro

According to some of the media, for example the broadcasting company RAI, the President of the Commission boasted about the stability of the euro when it came into circulation as a tangible currency, claiming that its value had not fluctuated despite repeated economic and financial crises on various continents.

However, if we compare the value of the euro since its arrival on the financial markets, it is obvious that it has weakened considerably against many other currencies, such as the US dollar, sterling and the Swiss franc.

Can the Commission say whether it is true that these alleged statements were made and, if so, why the President said something which is not true?

Answer given by Mr Prodi on behalf of the Commission

(4 April 2002)

The President has repeated on many occasions that, since its introduction on 1 January 2002, the euro has proved its capacity to act as a factor of stability in times of uncertainty. As he emphasised in his speech on the State of the Union delivered to the Parliament in Strasbourg on 11 December 2001, Just imagine what would have been the impact of 11 September 2001 if we had not had the euro. No doubt, we would have seen great instability of exchange rates in Europe. The consequence could have been dramatic for the Single Market, and for growth and employment throughtout the Union, as it was at the beginning of the 1990s, when Europe's currencies faced great unstability.

The euro has also delivered price stability to European citizens. On average during the period 1999-2001, consumer prices in the euro area have increased by less than 2 % per annum. This is far better than the situation that prevailed during the period 1990-1998, when consumer prices in the area increased by 3,5 % per annum. The euro has boosted price stability especially in Member States such as Italy, which until 1995 had inflation rates well well above 5 %. Thanks to the consolidation of public finance accomplished during the run-up to the euro, Italy now enjoys a much lower inflation rate.